High Probability Trading

Category: Books

While it is a cliché, it is also true that there are no bad traders, only bad trades. Let High Probability Trading show you how to weed the bad trades from your trading day by helping you see them before they occur. Packed with charts, trading tips..

I have to say this is an engineer's dream and there is a ton of data, charts, indicators, etc. However, without more colorful commentary, stories, examples, etc. the book gets a bit boring and tough to get through. I would say if you are love and want only data, this is a good book for you. If you are more of a creative type like me, this may be a bit dry.

This review is the subjective opinion of an Investimonials member and not of Investimonials LLC

This is the best book I've read so far in terms of the breakdown, including success and pitfalls of becoming a full time day trader.

This is a long book, nearly 400 pages and it's separated into different concepts that traders must know to take it to the next level. The main points are reiterated and Link's personal experiences are shared. I like how the book discusses flaws in newbie day traders such as only going off one indicator, looking for the bounce play, averaging down etc. It doesn't waste time discussing the statistical make up of certain technical indicators but discuses different setups and how to use them. The main theme is taking higher probability trades such as using multiple time frames and multiple indicators, having clear exits for your losing trades, and developing profit taking strategies when the trade goes your way.

This is the best educational book on Trading I have ever read. I look forward to Link's future works.

This review is the subjective opinion of an Investimonials member and not of Investimonials LLC

Probably the best practical how-to book on the subject of daytrading stocks, indices, and futures contracts.

It's all technical - that is, chart-reading - but you get a much clearer idea of how to actually trade using a chart than you do out of all the classic technical analysis books. There is nothing in this book about chart patterns (triangles, cups, flags, etc.) or about candlestick formations. Perhaps the author doesn't consider those things worthwhile, but personally I find that knowing about them is at least helpful.

His mantra is trading with the trend of a higher time-frame than the one you are trading in and basically trying to capture the meat of the next wave after a correction in the direction of that trend in your trading time-frame. He uses trendlines and channels to find the best entries and exits. If there is no trend then you are in a range-bound market and should play the range reversals at the extremes - when this fails be prepared to play the break of the range without chasing it, which usually means waiting for a pullback (in which case you have now switched back to trend-following tactics). Breaks of channels in the higher time frame create a reversal in trend and are played in a similar manner.

There is alot of material on using oscilators correctly, especially Stochastics - not just looking for reversals when it crosses and turns from overbought and oversold like most people use it. He shows how it can be helpful in both trends and range-trading.

Interestingly enough, he includes some examples of "high probability trades" that are against the trend as well - although he always goes back to saying you are better off sticking to trades with the trend. (There are a few seemingly contradictions like that but this is still a great trading book.)

Link stresses over and over that top traders will have 50% losing trades. So what trading boils down to is a probability game like poker or backgammon. Your average winner has to be significantly higher than your average loser - and that's where picking the good setups comes into play. So you want to be stepping in where different types of traders and investors in different time frames all get signals in the same direction and will act as a collective force to move the market because of it. Even with that, still expect 50% losers so these spots must have reasonably tight stops that still give the market wiggle room but when the move happens it will usually be sustained enough to make up for all the losers plus some.

Link also acknowledges that it doesn't matter how large or small your profits are when you take them as long as you are systematically taking even smaller losses. This opens one's mind to different approaches that can all be successful.

The book lacks a clearly defined trading plan - it is up to the reader to develop one of his own from these concepts. But the building blocks of a successful plan are certainly contained herein.

This review is the subjective opinion of an Investimonials member and not of Investimonials LLC

I gave this book 5 stars for the very fact that its the first trading book I've read that emphasises the importance of having a *plan*.

This is not really a book about how to do technical analysis - there are libraries of books out there that you can use for that which treat the subject in a lot more depth.

Marcel makes no bones about the fact that you are likely to lose money for the first couple of years, but if you have a good plan and stick to it, learn from your winning and losing trades, keep a trading diary and adjust your technique, then you have a good chance of outperforming your peers.

So in essence, this is what the book is about - creating and backtesting your own trading strategy and the disciple that is necessary to succeed.

This review is the subjective opinion of an Investimonials member and not of Investimonials LLC

At the risk of being repetitive, I'm going to have to give this book another stellar review. Like many others, I have read a hundred other trading books and this one stands heads above the rest. The author is obviously an active trader and is not ashamed to divulge his weaknesses, even current ones. He covers all of the necessary bases (psychology, money management, risk management, setups, tradeable markets, etc.) without being exessively wordy. He is one of the few traders who can actually write relatively well. He manages to explain arcane and complex trading concepts using understandable and economical word choices. The review structure at the end of each chapter is an excellent technique to enhance the learning process.

Yes, most of the information is more useful to the novice trader but one neeeds a basic comprehensive understanding of trading to get the most benefit. On the flipside, since it is so inclusive, the book could serve as an excellent refresher for the seasoned trader. That trader might even come across a concept long forgotten and be able to turn it into a profitable strategy.

HPT has become my primer. I come back to it every few months to review sections that I feel weak in. I recommend this book to everyone who asks me for that "one book" that can get them a head start in learning to trade.

Great job Mr. Link! I eagerly await your next contribution to the world of trading literature.

This review is the subjective opinion of an Investimonials member and not of Investimonials LLC

If you want a detailed book about technical analysis, with lots of explanations, setups, etc. etc., there's "Technical Analysis Explained" by Martin J. Pring, or you can buy something by Jack Schwager or John Murphy.

If you want a book about building and testing a trading system, there's "Trade Your Way to Financial Freedom" by Van K. Tharp.

If you want a self-help book about discipline / psychology, there are a lot of those, some in the investment section, some in the psychology section.

If you want a book about day-trading, there are a ton of those as well.

The thing I like about this book is that everything is there in one place. At the end of each chapter, the author gives you pointers on what to do and what to avoid doing to reinforce your memory of the principles. The book is written in a very readable style. I got this book about three weeks ago, and by applying some of the principles I learned from the book, I made two profitable trades (which I would not have normally made) and avoided making a trade which I normally would have made. This trade would have been a loser. As a result of reading this book, I made and saved enough money in the last three weeks to buy ten copies of this book. Isn't that why we read these books???

This review is the subjective opinion of an Investimonials member and not of Investimonials LLC

Very clear and well organized with lots of charts and examples to support the Marcel's main concepts he's trying to convey. Trading probabalities is something you have to be aware of esp. if you are trading a lot.

This review is the subjective opinion of an Investimonials member and not of Investimonials LLC